H&R BLOCK
Check for Understanding 8.2
Sergeant Gary Miller grew up in Knoxville, Tennessee (his domicile and home of record when he entered the military). Sergeant Miller is now stationed in California, where he met and married his wife, Ginger. Ginger is a California resident and works as an administrative assistant. They paid a daycare provider $6,200 to watch their three-year-old son while they worked. Ginger earned $68,000, and Gary's only income was $30,000 from his military pay. Do the Millers qualify for the nonrefundable Child and Dependent Care Expenses Credit in California?
No. Gary's wages are not considered California-source income.
No. Their federal AGI is higher than $100,000.
Yes. Gary's income is considered California-source earned income.
Yes. Gary's military income is subtracted from California AGI, reducing their income below $100,000.
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